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Company registration number: 00223275

Taunton Racecourse Company Limited

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2023

 

Taunton Racecourse Company Limited

Contents

Chairman's Statement

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Taunton Racecourse Company Limited

Chairman's Statement for the Year Ended 31 May 2023

This year has seen a normal year for the first time since the Covid-19 pandemic. Your board has therefore focused on consolidating the position and re-investing the surplus made in 2021 for the benefit of racing.

The biggest project in the past year has been the upgrade of the jockey’s changing room and the associated facilities referred to in my statement last year. We were among the first courses to undertake this work in the country and the outcome has been received favourably by all parties. The cost, which was in excess of £550K has been funded partly through grants under the capital credits scheme, which involved forgoing income in earlier years and partly from our own resources, which in turn has had an impact on our profit and loss account as some of the expenditure was of a refurbishment and replacement nature. In consequence, the trading result for Taunton Racecourse Company Limited is £39k. The subsidiary company, Orchard Restaurant Limited, has made an operating profit of £136K. In addition we had made a provision in 2022 of £50K in respect of any clawback of our Covid business interruption claim which we can now release. Therefore, I am pleased to report that the group position shows a satisfactory result with the group profit before tax of £225k.

In addition, we have preserved a strong financial situation with no debt and some reserves in terms of capital credits, which we can draw as grants for future projects. With that in mind, we are in the process of completing a further refurbishment in readiness for next season. There will be a new syndicate suite above the winning owner’s facility, which will accommodate around one hundred people and, we hope, will ease the pressure on the owners and trainers race day facility.

The hospitality and catering side of the business, which is conducted through Orchard Restaurant Limited has made a full recovery in terms of business and continues to grow through the excellent reputation of our in-house catering.

Whilst this has been a successful year financially, crowds were slightly down and therefore, we view 2023/24 as being a year of wait and see as we absorb the cost increases and other impacts of the general economic environment.

I would like to record a thanks to our excellent staff, who have made through their commitment and hard work, the last three challenging years the success it has been.

Finally, it is with much sadness that I have to report the recent death of Paul Barber. Paul had resigned as a director during the year, although continued to come racing. Besides his contribution as a wise head on the board for many years, he was an enthusiastic supporter of racing at Taunton and always enjoyed his visits in whatever capacity as director, owner, or spectator. I am sure that the words ‘he will be greatly missed’ have never been more appropriately used.

David Griffin
8 August 2023
 

 

Taunton Racecourse Company Limited

(Registration number: 00223275)
Balance Sheet as at 31 May 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

2,647,165

2,196,195

Investment property

6

290,000

290,000

Investments

7

2

2

Other financial assets

8

36,186

36,186

 

2,973,353

2,522,383

Current assets

 

Debtors

9

583,348

637,816

Cash at bank and in hand

 

237,997

472,552

 

821,345

1,110,368

Creditors: Amounts falling due within one year

10

(318,813)

(87,244)

Net current assets

 

502,532

1,023,124

Total assets less current liabilities

 

3,475,885

3,545,507

Grant account

11

(1,629,142)

(1,737,967)

Provisions for liabilities

 

Deferred tax liabilities

 

(98,562)

(71,332)

Net assets

 

1,748,181

1,736,208

Capital and reserves

 

Called up share capital

4,000

4,000

Share premium reserve

1,503

1,503

Capital redemption reserve

167

167

Fair value reserve

 

118,220

118,220

Profit and loss account

1,624,291

1,612,318

Total equity

 

1,748,181

1,736,208

For the financial year ending 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

 

Taunton Racecourse Company Limited

(Registration number: 00223275)
Balance Sheet as at 31 May 2023

Approved and authorised by the Board on 8 August 2023 and signed on its behalf by:
 


D H Griffin
Chairman

   
 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Orchard Portman
Shoreditch
Taunton
Somerset
TA3 7BL

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts..

Turnover recognition

Turnover represents amounts receivable by the company for the supply of media rights, the receipt of revenue incentives and the provision of goods or services to race-goers and other parties. Turnover is shown net of VAT.

The largest components of turnover are admission income, income from the suppply of race day media rights, income from sponsors and revenue incentives received from the Horserace Betting Levy Board (HBLB), all recognised when the related race meeting has taken place; it also includes non-race day media rights, recognised when contractually due. Turnover includes club membership income, recognised on a time-apportioned basis across the period to which it relates.

Other operating income comprises lettings and rental income, recognised when it relates to an event that has taken place or where contractually due; it also includes the amortisation of capital grants, recognised at the same rate at which related assets are being depreciated, other government grants, recognised as related costs are included, and management charges receivable, recognised when due.

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2023

Government grants

Revenue grants in the form of racing incentives are received from the Horserace Betting Levy Board (HBLB) and accounted for as turnover.

Under the HBLB's capital credit scheme, racecourses can elect to claim capital grants as an alternative to revenue grants. Capital grants receivable under this scheme are recognised as a debtor and as deferred income (by a credit to the grant account). When a capital grant is approved and paid by the HBLB, the debtor is reduced and credits are made to the profit and loss account to amortise the related grant by equal instalments which match the period over which the relevant fixed assets are depreciated.

Other government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

Not depreciated

Stands and buildings

2 - 5% straight line basis

Course improvements

5% straight line basis

Machinery, fittings and equipment

15% straight line basis

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2023

Motor vehicles

25% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate. Fair values are determined periodically by an external valuer, and confirmed annually by the directors. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the profit or loss, and equivalent transfer is made between the fair value reserve and profit and loss reserve. Income earned from investment property is recognised in Other operating income when receivable.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 13 (2022 - 13).

4

Government grants

During the year other income of £nil (2022 - £9,560) was receivable from the government under the coronavirus job retention and other support schemes. At the year end £nil (2022 - £nil) was presented in other debtors in relation to the coronavirus job retention scheme.

The amount of grants recognised in the financial statements was £108,825 (2022 - £80,517).

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2023

5

Tangible assets

Freehold land
£

Stands and buildings
 £

Course improvements
 £

Machinery, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2022

421,071

2,925,155

713,059

384,907

98,068

4,542,260

Additions

-

493,676

98,721

8,701

14,750

615,848

Disposals

-

(69,878)

-

-

-

(69,878)

At 31 May 2023

421,071

3,348,953

811,780

393,608

112,818

5,088,230

Depreciation

At 1 June 2022

-

1,387,419

527,661

333,665

97,320

2,346,065

Charge for the year

-

74,785

21,915

20,991

4,436

122,127

Eliminated on disposal

-

(27,127)

-

-

-

(27,127)

At 31 May 2023

-

1,435,077

549,576

354,656

101,756

2,441,065

Carrying amount

At 31 May 2023

421,071

1,913,876

262,204

38,952

11,062

2,647,165

At 31 May 2022

421,071

1,537,736

185,398

51,242

748

2,196,195

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2023

6

Investment properties

2023
 £

At 1 June 2022

290,000


The investment properties class of fixed assets was valued at £290,000 on 11 April 2017 by Webbers Property Services Limited, who are external to the company. The basis of this valuation was current market value. The directors are of the opinion this is still a fair value.

7

Investments

2023
£

2022
£

Investments in subsidiaries

2

2

Subsidiaries

£

Cost or valuation

At 1 June 2022

2

Provision

Carrying amount

At 31 May 2023

2

At 31 May 2022

2

8

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 June 2022

36,186

36,186

At 31 May 2023

36,186

36,186

Impairment

Carrying amount

At 31 May 2023

36,186

36,186

 

Taunton Racecourse Company Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 May 2023

9

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

557,314

568,591

Amounts owed by group undertakings and undertakings in which the company has a participating interest

-

49,627

Prepayments

 

25,434

18,998

Other debtors

 

600

600

   

583,348

637,816

Details of non-current trade and other debtors

£185,260 (2022 -£485,260) of Trade debtors is classified as non current. These amounts represent capital grants receivable from the Horserace Betting Levy Board, which will be paid at their discretion. An equivalent deferred income creditor is recognised within the Grant account.

10

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Trade creditors

 

65,603

26,593

Amounts owed to group undertakings and undertakings in which the company has a participating interest

21,563

-

Taxation and social security

 

45,753

19,162

Other creditors

 

185,894

41,489

 

318,813

87,244

11

Grant account

Grant account
£

At 1 June 2022

1,737,967

Amortisation released to profit for the year

(108,825)

At 31 May 2023

1,629,142